Critical illness insurance is a relatively new concept in the insurance marketplace. Critical illness insurance was introduced to the world in 1983 and came to the U.S. in the mid 1990s. The reason that this new type of insurance became necessary at that time was because new advances in medicine made it so more people were surviving critical illnesses that would have previously been fatal. While this was a great achievement, patients began to have trouble covering expenses through recovery.

An Affordable Solution

Critical illness insurance is cheaper than other types of insurance. You may be able to find a critical illness insurance plan starting at just 15 cents a day, or about $4.50 a month. Plans generally pay out $10,000, $20,000, or $30,000 in the event that a critical illness strikes. The amount of payout is sent in a lump sum to the policy holder, in most cases.

Can Help to Prevent Financial Strain

Critical illness insurance was created by a heart surgeon after he realized that his heart attack and stroke patients were recovering well, only to suffer complications caused by stress after going home to hospital bills and financial stresses. Critical illness insurance helps to alleviate some of the financial woes so that patients are able to focus on rehabilitation. Being able to focus on wellness can help patients avoid hospital readmissions and prevent further issues.

Covers a Range of Medical Issues

May Payout for Preventative Tests

A small portion of the insurance may be paid out for certain preventative tests. Up to $75 may be paid to the policy holder to help cover EKGs, pap smears, and blood tests ordered by physicians for preventative purposes. By receiving screenings, patients may help to prevent critical medical events from occurring or may catch illnesses in early stages.

Can Help to Cover Insurance Gaps

Critical illness insurance can help to cover gaps left by health insurance. Deductibles and copays from health insurance plans can make critical illness diagnosis and treatment costly, even when health insurance plans are considered desirable. Critical illness insurance payouts can be used to cover the costs of deductibles and copays so that patients have to pay little to nothing out of pocket. Insurance pay outs can also be used to cover daily living expenses during the recovery period, helping to replace lost wages.

Health insurance is something that has been widely talked about in the United States in recent years. Health care reform has made health insurance available to more people and helped to eliminate barriers to obtaining insurance that were present in the past. Obtaining health insurance can help you to keep yourself and your family healthy and can help you to avoid paying tax penalties.

Tax Penalty Will Increase for 2016

For 2015, the penalty for not having a qualifying health insurance plan is either two percent of household income or $325 per adult, whichever is higher. The penalty for each child under 18 in the household is $162.50, with a maximum of $975 per household. This penalty is paid with federal income tax for the year. For 2016, the penalty will increase to 2.5 percent of household income or $695 per adult. Penalty per child will increase to $347.50, with a maximum household penalty of $2,085.

What You Select Affects Your Premiums

When selecting a healthcare plan, the options that you choose can either raise or lower the monthly premiums that you are required to pay in order to keep the insurance. Selecting a plan with a high deductible will lower the amount that you are required to pay per month. Selecting a plan that has lower copays or that covers a higher percentage of certain services may increase monthly premiums. An insurance agent can help you to select a plan that fits your needs and budget.

Qualifying Life Events May Extend Enrollment Period

Open enrollment periods may vary based on the insurance company. However, these generally occur during the late fall and early winter. If you fail to sign up for insurance during the open enrollment period, certain qualifying life events may make you eligible to sign up during a special enrollment period.

Qualifying life events may include circumstances such as:

Marriage

Divorce

Birth of a child

Loss of minimum essential coverage

Relocation to a new county or state

Release from incarceration

Becoming a dependent

Gaining U.S. citizenship

Insurance Helps You Stay Healthy

Obtaining health insurance can make it easier for you to keep yourself and your family healthy. Wellness check-ups and certain preventative services may be available at no out-of-pocket cost. If an accident occurs or you or someone in your family becomes sick, insurance can make it much more affordable to seek medical treatment. Health insurance can help make it easy for your family to seek necessary services to enjoy the highest degree of health and wellness possible.